ESTATES

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THE SHADOW OF THE PAST

• ESTATES FUTURE INTERESTS

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LEARN THEIR NAMES
SPOT
BUTCH
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RECURRING ISSUES

• Grantors Intent v. Dead Hand Control

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RECURRING ISSUES

• Grantors Intent v. Dead Hand Control
• Grantors Intent v. Alienability

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PRESENT POSSESSORY ESTATES
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PRESENT POSSESSORY ESTATES

• Present v. Future
• (Tenant v. Landlord)

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PRESENT POSSESSORY ESTATES

• Present v. Future
• Possessory v. Non-Possessory
• (Tenant v. Trust Beneficiary)

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FEE SIMPLE ABSOLUTE
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FEE SIMPLE ABSOLUTE

• Right to possess and use forever

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FEE SIMPLE ABSOLUTE

• Right to possess and use forever
• Right to transfer all present and future rights
  (inheritable/devisable)

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FEE SIMPLE ABSOLUTE

• Right to possess and use forever
• Right to transfer all present and future rights
  (inheritable/devisable)
• Right to liquidate assets

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FEE SIMPLE ABSOLUTE

• Right to possess and use forever
• Right to transfer all present and future rights
  (inheritable/devisable)
• Right to liquidate assets
• Default estate today

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FEE SIMPLE ABSOLUTE
Lloyd grants Redacre to Mimi and her heirs.
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FEE SIMPLE ABSOLUTE
Lloyd grants Redacre to Mimi and her heirs.
WORDS OF PURCHASE Who Gets the Estate?
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FEE SIMPLE ABSOLUTE
Lloyd grants Redacre to Mimi and her heirs.
WORDS OF PURCHASE WHO GETS THE ESTATE?
WORDS OF LIMITATION What Estate do they
Get?
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RELEVANT TIME FRAMES

• At Common Law Dates prior to modern
  streamlining of the rules. (e.g., 1600-1800)

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RELEVANT TIME FRAMES

• At Common Law Dates prior to modern
  streamlining of the rules. (e.g., 1600-1800)
• Today Dates after modern streamlining of the
  rules.
• (e.g., 1950-present)

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RELEVANT TIME FRAMES

• At Common Law Dates prior to modern
  streamlining of the rules. (e.g., 1600-1800)
• Today Dates after modern streamlining of the
  rules. (e.g., 1950-present)
• Precise line between varies from state to state
  and from issue to issue, so you dont need to
  know where it is.

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FINITE ESTATES
TERM OF YEARS LIFE ESTATE FEE TAIL
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FINITE ESTATES
TERM OF YEARS TO ANN FOR 10 YEARS LIFE
ESTATE FEE TAIL
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TERM OF YEARS

• Finite period specified
• Can alienate, devise, inherit (until term ends)
• Need explicit time language to create (for 99
  years)

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FINITE ESTATES
TERM OF YEARS TO ANN FOR 10 YEARS LIFE
ESTATE TO BEA FOR LIFE FEE TAIL
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ISSUE v. HEIRS

• Issue Direct Descendants
  (Children, Grandchildren, etc.)

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ISSUE v. HEIRS

• Issue Direct Descendants
• Heirs People who inherit your property at the
  time of your death under the relevant Intestacy
  Statute

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ISSUE v. HEIRS

• Issue Direct Descendants
• Heirs People who inherit your property at the
  time of your death under the relevant Intestacy
  Statute
• You cannot have heirs until the moment of death

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FINITE ESTATES
TERM OF YEARS TO ANN FOR 10 YEARS LIFE
ESTATE TO BEA FOR LIFE FEE TAIL TO CAL
THE HEIRS OF HIS BODY
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FUTURE INTERESTS THAT FOLLOW FINITE ESTATES

• REVERSION
• REMAINDER

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FUTURE INTERESTS THAT FOLLOW FINITE ESTATES
REVERSION Future interest retained by grantor
when s/he conveys a finite estate without
indicating who will have rights when it expires.
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FUTURE INTERESTS THAT FOLLOW FINITE ESTATES
REVERSION Future interest retained by grantor
when s/he conveys a finite estate without
indicating who will have rights when it expires.
E.g. Ceci conveys Greenacre To Didi for
life. Ceci retains a reversion.
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FUTURE INTERESTS THAT FOLLOW FINITE ESTATES
REMAINDER Future interest in a third party that
follows naturally upon the termination of a
finite estate. It is always expressly conveyed
by the grantor.
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FUTURE INTERESTS THAT FOLLOW FINITE ESTATES
REMAINDER Future interest in a third party that
follows naturally upon the termination of a
finite estate. It is always expressly conveyed
by the grantor. E.g. Fifi grants Tanacre To
Gigi for life, then to J.J. J.J. has a
remainder. Fifi retains nothing.
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FEE SIMPLE ABSOLUTE

• Right to possess and use forever
• Right to transfer all present and future rights
  (inheritable/devisable)
• Right to liquidate assets
• Default estate today

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LIFE ESTATE

• Right to possess and use only for lifetime of
  original grantee

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LIFE ESTATE

• Right to possess and use only for lifetime of
  original grantee
• Right to transfer only rights for lifetime of
  original grantee (not inheritable/ devisable)

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What if a living person transfers a life estate?

• Opal conveys Gemacre to Ruby for life,
  retaining a reversion herself.
• Ruby then conveys her life estate to Esmeralda.
• What does Esmeralda have?

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What if a living person transfers a life estate?

• Opal conveys Gemacre to Ruby for life,
  retaining a reversion herself.
• Ruby then conveys her life estate to Esmeralda.
• Esmeralda has a life estate pur autre vie (for
  the life of another). The duration of the
  interest is still measured by Rubys life.

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LIFE ESTATE

• Right to possess and use only for lifetime of
  original grantee
• Right to transfer only rights for lifetime of
  original grantee (not inheritable/devisable)
• Right only to present income cant liquidate
  capital (Doctrine of Waste)

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LIFE ESTATE

• Right to possess and use only for lifetime of
  original grantee
• Right to transfer only rights for lifetime of
  original grantee (not inheritable/devisable)
• Right only to present income cant liquidate
  capital
• Default Estate at Common Law

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DEFAULT ESTATE (To Bill.)

• Common Law Default was Life Estate
• Bill gets Life Estate
• Grantor keeps Reversion

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DEFAULT ESTATE (To Bill.)

• Common Law Default was Life Estate
• Bill gets Life Estate
• Grantor keeps Reversion
• Today Default is Fee Simple
• Bill gets Fee Simple Absolute
• Grantor keeps nothing

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DEFEASIBLE FEES
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DEFEASIBLE FEESRestatement Terms

• FEE SIMPLE DETERMINABLE
• FEE SIMPLE ON CONDITION SUBSEQUENT
• FEE SIMPLE ON EXECUTORY LIMITATION

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FEE SIMPLE DETERMINABLE

• OPERATION Self-Executing

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FEE SIMPLE DETERMINABLE

• OPERATION Self-Executing
• KEY LANGUAGE So long as, While, Until

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FEE SIMPLE DETERMINABLE

• OPERATION Self-Executing
• KEY LANGUAGE So long as, While, Until
• FUTURE INTEREST Possibility of Reverter (in
  GRANTOR)

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FEE SIMPLE DETERMINABLE

• OPERATION Self-Executing
• KEY LANGUAGE So long as, While, Until
• FUTURE INTEREST Possibility of Reverter
• EXAMPLE To Estelle and her heirs so long as
  asparagus is not grown on the property.

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FEE SIMPLE ON CONDITION SUBSEQUENT

• OPERATION Grantor must act

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FEE SIMPLE ON CONDITION SUBSEQUENT

• OPERATION Grantor must act
• KEY LANGUAGE
• But if, provided that if, on condition that
  if PLUS
• O may reenter and reclaim the land

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FEE SIMPLE ON CONDITION SUBSEQUENT

• OPERATION Grantor must act
• KEY LANGUAGE
• But if, provided that if, on condition that
  if PLUS
• O may reenter and reclaim the land
• FUTURE INTEREST Right of ReEntry (in
  GRANTOR)

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FEE SIMPLE ON CONDITION SUBSEQUENT

• OPERATION Grantor must act
• KEY LANGUAGE
• But if, provided that if, on condition that
  if PLUS
• O may reenter and reclaim the land
• FUTURE INTEREST Right of ReEntry
• EXAMPLE To Estelle and her heirs, but if
  asparagus is grown on the property, I can reenter
  and claim the land

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FEE SIMPLE ON EXECUTORY LIMITATION

• OPERATION Either self-executing or grantee has
  to act.

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FEE SIMPLE ON EXECUTORY LIMITATION

• OPERATION Either self-executing or grantee has
  to act.
• KEY LANGUAGE Creates interest in 2d grantee if
  condition violated

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FEE SIMPLE ON EXECUTORY LIMITATION

• OPERATION Either self-executing or grantee has
  to act.
• KEY LANGUAGE Creates interest in 2d grantee if
  condition violated
• FUTURE INTEREST Executory Interest (in 2d
  grantee)

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FEE SIMPLE ON EXECUTORY LIMITATIONEXAMPLES

• To Estelle and her heirs so long as asparagus is
  not grown on the property, otherwise to Bob

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FEE SIMPLE ON EXECUTORY LIMITATIONEXAMPLES

• To Estelle and her heirs so long as asparagus is
  not grown on the property, otherwise to Bob
• To Estelle and her heirs, but if asparagus is
  grown on the property, Bob can reenter and claim
  the land

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DEFEASIBLE FEESRestatement Terms

• FEE SIMPLE DETERMINABLE (to grantor
  automatic)
• F.S. ON CONDITION SUBSEQUENT (to grantor must
  act)
• F.S. ON EXECUTORY LIMITATION (any to grantee)

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VESTED v. CONTINGENT REMAINDERS
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FUTURE INTERESTS THAT FOLLOW FINITE ESTATES
REMAINDER Future interest in a third party that
follows naturally upon the termination of a
finite estate. It is always expressly conveyed
by the grantor.
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VESTED REMAINDER

• Grantee is living ascertainable person
• (Presumed if granted to a named individual)

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VESTED REMAINDER

• Grantee is living ascertainable person AND
• Clause creating the remainder contains no
  condition on grantee taking the property except
  expiration of prior estate

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VESTED REMAINDER

• Grantee is living ascertainable person AND
• Clause creating the remainder contains no
  condition on grantee taking the property except
  expiration of prior estate
• Example To Aaron for life, then to Oona and her
  heirs.

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CONTINGENT REMAINDER

• Grantee is presently unborn or unascertainable
• OR
• Clause creating the remainder contains a
  condition on grantee taking the property

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CONTINGENT REMAINDEREXAMPLES

• To Fred for life, then to Freds firstborn
  child. Fred presently has no children.
  (Not born)

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Suppose Fred has a Child
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CONTINGENT REMAINDEREXAMPLES

• To Fred for life, then to Freds firstborn
  child. Fred presently has no children.
• To Fred for life, then to Freds oldest child
  living at Freds death. (not ascertainable)

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CONTINGENT REMAINDEREXAMPLES

• To Fred for life, then to Freds firstborn
  child. Fred presently has no children.
• To Fred for life, then to Freds oldest child
  living at Freds death.
• To Fred for life, then to Wilma and her heirs if
  Dino survives Fred. (condition precedent)

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ANALOGY

• Vested Remainder ?
• Theater Ticket
• Contingent Remainder ? Lottery Ticket

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Life Estate Vested Remainder

• To Fred for Life, then to Wilma and her heirs

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Life Estate Contingent Remainder

• Barney to Fred for Life, then to Wilma and her
  heirs if Dino survives Fred.

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Life Estate Contingent Remainder

• Barney to Fred for Life then to Wilma and her
  heirs if Dino survives Fred.
• Barney retains a reversion.

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REMAINDERS IN

• To Fred for life, then to Wilma for life.
  Wilma has a vested remainder in life estate
• To Fred for life, then to Wilma and her heirs if
  Dino survives Wilma.
• Wilma has a contingent remainder in fee
  simple